tv Boom Bust RT April 27, 2019 1:30pm-2:01pm EDT
emmanuelle macron a friend unveils his response to growing unrest including the still kicking yellow vest movement some are expecting major policy proposals from mr micron after the presidential coming after what he called a great national debate on economics that exercise was a response to the yellow vests protest movement which is now smaller but still visible and vocal but while the french president did propose to index pension packages under two thousand euros to protect pensioners from inflation and promise to take out income taxes by five billion euros he seemed to risk disappointing the country with few policy details and a defensive stubborn tone in a national address mr micron posed a rhetorical question how we've gone in the wrong direction and then he confidently judged his own performance informing the french i don't think so a founder of the yellow bus movement responded to president micron's address. i am disappointed very day but he was my point. emanuel most. important.
he didn't announce. expected by the yellow vests. france has been going as usual have five months if you don't mind it. moving from paris to beijing the chinese president saying no to world leaders attending the second conference on the bell and road initiative that he hears their concerns and criticism president xi jinping officially opened the conference and beijing with pledges of transparency and zero tolerance for corruption mr xi also signaled a broadening of the p.r.i. to encompass peer to peer partnerships among sectors including science and agriculture mr xi also promised what he called a framework for debt sustainability somebody partners notably the malaysian prime minister must hear the whole that mohamed has grumbled about being saddled with debt from many. infrastructure projects many b.r.y.
watchers also notice that the chinese president encourage private sector capital to invest and p.r.i. projects in the past projects pledges of funding from the chinese state. and now to take a more in-depth look at the summit and china's latest moves we're happy to welcome international investor jim rogers fellow i ask if there was a lot of expectations that the and at the second conference what what are the main takeaway. crissy that first let me tell you it's not often the geography changes six hundred years ago the spanish and the portuguese sailed around the world changed geography two hundred years ago the railroads changed geography the chill what the chinese are doing now is gigantic it's going to change geography again poor of the few times in history a lot of people are going to get very very rich some people are just going to fade away so this is a very important critics who say it costs
a lot of money well it does but it costs a lot of money for columbus to sail to america to cause a lot of money to build the city of chicago this is very very good news for the world for those who get it right and it looks like here britain is looking to continue to forge an even closer relationship with china as it leaves the e.u. china would indeed be a powerful friend to have in their back pocket philip hammond chancellor of the exchequer is looking to announce closer cooperation on trade and banking initiatives as well this includes a shanghai london stock connect plan tell us the latest on that. well italians too it's not just the british of course the british are going to need all the friends they can get if they leave if they leave the you but of course they have a long tradition in china some of it good some of it bad this will be good news for the brits of the if the chinese will have them. and china's making some really big moves they recently lobbied the southeast asian nations to include the yen and the
u.n. to be added to the emergency pool known as the chiang mai initiative this would reduce the framework over reliance on the dollar tell us first exactly like what is the cham my initiative and what does that do. first of all you need to understand that more and more people are trying to find a competitor to the u.s. dollar the u.s. dollars had a monopoly on world trade and medium of exchange for several several decades now and then they want that to change so the chinese the indians the iranians and if you are the people trying to develop competitors to the dollar and one of the things you just mentioned is to come up with a competing currency and they may be doing it they've got a lot of clout they have a lot of population they have a lot of assets so inhabiting the u.s. all of it in any case kristie is a very flawed currency i don't like saying it but america's the largest debtor nation in the history of the world so we need a competing currency and it's probably going to come out of asia yeah this missed
signals that china want to expand it internationalize the yen to expand influence on the region so what's the game plan here. it cannot happen kristie unless they make it convertible unless they make it up freely tradable currency now they've been moving in that direction since two thousand and five i would do it his afternoon if i were china china doesn't have to listen to me obviously they're not listening to me but the sooner they make their currency convertible the sooner it will be used in the international dreda and as a medium of exchange and in the packages the currency packages we've been talking about. what how do you think that we can for the stabilize the chinese again because the currency hasn't been the most stable in recent years it think this is going to be an issue going forward. well it's been strong has gone up a lot in recent years the last two or three years it's been more or less sideways
it's had fluctuations up and down but kristie every currency look at any currency the yen euro any kind the u.s. dollar all of them have fluctuated and it is normal for currencies to fluctuate. renminbi has not been more fluctuating than most other currencies that in less than in some. and finally there's speculation that the us china trade war might finally be coming to an end give us the latest here. well yes we're going to have good news coming out of washington and beijing soon everybody was good news it's going to sound good we're all going to say wow thank goodness it was going to feel better but unfortunately next year or whenever the real hard times come again mr trump is going to come back with even more trade war he thinks in his brain the trade wars are good he thinks he can win a trade war his ad buys are due to so look for some good news for a while but be worried about what that meant when the american economy hits
problems in a year or two it's going to get really bad because he's going to come back against the chinese the japanese the koreans the germans ever the mexicans the canadians everybody all right now the chinese investors are worried about lower growth in the region if there is no continuous government supported stimulus injected into the economy do you think this is a concern or where is the growth in asia right now if it's not external. well we don't we don't always have to have growth christi i mean the world had many many many periods throughout history when things slow down it's been over ten years since the world had an economic slowdown a recession that's the longest in american history anyway so we're overdue but don't worry this is normal with the way the world works the chinese have started cutting back on the debt and they should the right thing to do but when you go from expanding debt to cutting debt you obviously slow down china will slow down good
for china if they can continue to do it which i hope they will. thank you so much for your time international investor jim rogers. there's a patch of oil sector arnie's reports to share today chevron has posted a report for the for. first quarter of twenty nineteen that shows a dramatic drop of twenty seven percent in profits compared to the first quarter of twenty eighteen revenue was down by six point eight percent year over year the oil giant also insisted their intent on inquiring anadarko petroleum despite a rival bid from occidental exxon was on a worst trajectory than chevron and their latest earnings report and for many of the same reasons exxon's profits fell by forty nine percent both companies seem to have been dragged into the red for q one by lower gas prices and problems in the refining subsidiaries. let's take a walk around the world to see how the global markets are doing this week we'll
start over here in russia with the moscow mo eggs down slightly after hitting an all time high on tuesday led by strong ruble and high or oil prices going out over to asia shanghai it was down over five percent to end the week as stocks dropped to a three week low and the stars are now worried about the future growth of the economy and a change in monetary policy the p.b.'s c. announced that they have no plans to either loosen or tighten policy and investors are worried that growth may stagnate if there is no potential further stimulus year to date though it is still massively twenty three point eight percent. over in tokyo the nikkei trade at all was choppy all week ending pretty much flat and unchanged the got a small gain last minute up less than one percent doesn't look like they're going into much risk taking this week as the japanese market will have a string of holiday related closures between april twenty ninth through may sixth to observe golden week the hound saying and hong kong was down over one percent as
a shanghai one home and i.p.o. hong kong biggest i.p.o. of two thousand one hundred plunged on its first day of trading and ended up twelve percent below its i.p.o. price this fall is the cooling down of the hong kong i.p.o. market after an amazing twenty eighteen when it became the world's number one i.p.o. market over new york moving down over to australia the a.s.x. and say x. had a fantastic shortened week and then friday at fresh eleven year highs growth stocks were boosted with the prospect of increased liquidity on the back of rate cuts tech and health care led this rally. going over to india the sense that some bombay had a decent week up modestly on strong steel and industrials we spoke about how quick the auto market is now growing. over in africa the all shares were down as they struggle to continue to track foreign investments over in europe the footsie also fell this week on some soft earnings number and the mining giant glencore
a guy hit by a probe into corrupt practices but the cac and the dax however were both up this week modestly on the back of strong company reports. over here in colombia the coal cap is up slightly led by gains in agriculture while the brazilian evil best is up in salt paulo in brazil two they had a rollercoaster week though as markets initially rose on the news of a vote on pension reform a drop soon after on worries of the hurdles it would have to clear it finally ended the week just slightly over in canada t s x t s x has had a decent week helped by higher oil prices however weak bombarded a earnings set the stage for a gloomy industrial outlook the t.s.a. then pulled back end of the week slightly negative meanwhile in the us the s.n.p. the n.y.s.e. and the nasdaq were all up about a percent on the back of strong earnings coming out of large cap leaders the nasdaq is now up twenty two percent for the year. time now for a quick break but hang here because when we return over on the i.p.o.
despite taking a major hit on q one earnings. a simpler trading steers us through all the latest moves for ideas in the market. and as we go to break here are the numbers at the closing bell. after the previous stage of my career was over everyone wondered what i was going. until next the ball different clubs on one hand it is logical to go from fields where everything is familiar on the other i wanted a new challenge and a fresh perspective i'm used to surprising people and i saw one on t.v.
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belittle them if you did it well yeah except you're then he says the calls for folks like me the folks with the security. oh. no. pity you will psycho. wall enclosure we're going to produce a. monkey is the. way to the pacific as best as well to stop that the pollution i was. the neat politically. from. the moment before. been. leaving. the
process so basically what i'm waiting for politically. ideally. from the moment. my seven years doing drugs my nephew was still in drugs my system just with doing drugs it was like an epidemic of drug abuse america's public enemy number one in the united states is drug abuse. and the users in the prison population. we started treating sick people people who are addicted to these drugs like criminals while i was on the hill. the war on drugs. with numbers of people who are in prison for. for minor minor offenders. it's
a lot watching your children grow up and miss you in waves and say by daddy as you're walking out of this it's just it doesn't get easier. even. as i live eat here if you're confident. we have. this is an e-mail for everyone why some people's minds so take our thing all the power. just for themselves.
welcome back i report from a washington think tank coauthored by famed economist jeffrey sachs estimated that more than forty thousand venezuela's have died due to the effects of u.s. sanctions the report published by the center for economic policy research says the u.s. sanctions imposed in august of two thousand and seventeen have blocked access to food and critical medicines most specifically the report says that the sanctions prevented the importation of anti-retroviral drugs needed by eighty thousand
patients with hiv as well as treatments for venezuelans in need of dialysis and those afflicted with cancer and diabetes mr sachs who the new york times has called the most important economist in the world said in a press release the american sanctions are deliberately aiming to wreck economy and thereby lead to regime change it is a fruitless heartless illegal and failed policy causing grave harm to the venezuelan people. earlier today u.s. treasury secretary steven minucci and announced new sanctions against the venezuelan foreign minister. a strike in scandinavia is threatening to ground thousands of passengers heading into the weekend more than fourteen hundred. pilots who want a new contract with s.a.'s airlines have stopped work and denmark norway and sweden nearly seven hundred flights with more than seventy two thousand booked passengers
were canceled on friday another one hundred thousand aspiring air travelers because see their flights taken off the board by sunday the swedish airline pilots association statement emphasize their demands for change and scheduling with some pilots allegedly being made to work seven weekends in a row the union's communication director karen nyman describes the state of affairs for example i can just say that we really have done everything we can reach more pollution but the demand for help in or around the table has been unrealistic and here is to jeopardize competitiveness policy. and circling back to the united states new g.d.p. numbers out today show surprising strength the latest figures from the u.s. commerce department show the u.s. economy growing at three point two percent in the first quarter hitting a level that exceeded expectations market watchers had been bracing for a much lower number after what felt like a full season of bad news including start market zigzags slowdowns in china and
europe and the u.s. has continued entanglement and trade by across the pacific and their lead pick us president donald trump reacted to the new numbers with his usual sense of humility and precision. which i believe very very low inflation our economy is doing great number one in the world but nobody want to go on to be right in the world and it's not even close. this has been a good earnings season weak so far we've seen some strong b.s. by companies like amazon locking martin and coca-cola leading the broader markets higher however there's a key segment of the market that is lagging smallcaps and the past two months the russell two thousand has been much weaker with the end mix down one percent since february meanwhile the s. and p. five hundred is up more than four percent here to help us break it down as danielle shay director of options at simpler trading welcome. thank you so much now this
under-performance is really unusual we generally see smith cap stocks lead rallies as they tend to be less liquid when the market rises they get bid up quickly but we're not seeing that here why is that you're right so we're not seeing that correlation and honestly i look back to last year and the way that the russell performed last year so if you remember in the beginning of twenty eighteen the russell was flying right but what got hit so badly in the correction the russell and so for me when i look at this i say you know what after the correction when we had money pouring back into the stock market the money went into the large cap stocks the ones that are solid microsoft amazon facebook google and for that reason i think that the russell lagging many caps are currently known as leading indicators indicating the health of the overall market they hold more debt than their large cap peers so they're more sensitive to inflation and rates what should be our takeaway here at this juncture should we be worried. you know i do think
it's something important to look at but at the same time correlations don't always work out and for me when i'm looking at the market and where the strength is i see a lot of strength in the cloud computing sector at the in the cybersecurity and in the large caps and for me those are also illiquid well not the large caps but the other two are a those are more illiquid names but they're also the flyers and so when you have a lot of money coming into those areas it gives me a lot of confidence in the market yes that's correct so russell lagging but i think that investors are just cautious after the way that it performed last year and i also think that the stocks within the sectors are are the ones that just are not as strong right now. looking ahead on earnings we have google and apple reporting on monday and tuesday was in store for us. so for these two these are going to be the last of the things that are reporting earnings we've seen a little bit of a mixed bag so far after looking at netflix microsoft and
amazon so first of all looking at both of them i would say they're incredibly strong they've had a lot of money coming into them but they're both very extended going in their earnings it's the same situation we have with the others if they are going to maintain that price point they have to absolutely blow away the numbers for me because the other companies have already reported so positive and we've seen rather muted moves that's what i'm looking for as more of a muted move in these two we saw amazon didn't react at all even though they be spectacularly showed that the stock had already pretty much priced in all the good news already. yes exactly. some look coming out we also have some very exciting i.p.o.'s we have hoover they recently revised their valuation down to eighty four billion in light of this struggle what do you make of this. i think that's incredibly smart i mean list came in with much too high of a valuation and you've seen sellers come in day after day at this point now with
taz about fifty five percent high short interest a lot of people betting on the stock to continue to go down who are coming in at a lower price point at a lower valuation particularly after a lift has done so poorly is going to set them up for success of course they're not profitable at this moment in time but they're continuing to expand their service offerings and i personally think it's a buy they are raising in order to try to expand and break into some international markets such as mexico but however mexico actually came out with some new regulation how is it we're going to be responding to this. so honestly i don't think that the worldwide market has been very good bird. they have to deal with all of the different issues in europe with regulations as well and then they also have competition from companies are starting up within their own countries so for me and while i can see that worst trying to go worldwide i think that they would be better
off if they were just focus on the u.s. and dominate dominating the u.s. like technologies is another one we have coming up ahead of their much anticipated i.p.o. they just released their earnings report showing tremendous revenue growth a four hundred point six million or two thousand eight hundred average their losses are also growing to what can we expect from them. i think the flock has done a really good job of changing culture and changing the ways that people communicate within a company and so looking at their earnings reports i think the key factor that we can take away from this is that the majority of their earnings come from their corporate accounts right and they have a lot of free accounts however the reason why they're doing that is because they're getting people into their ecosystem so i think that's going to set them up in the future to be able to charge even a small subscription fee that will enable them to increase their margins exponentially because they're already going to have millions of people within their
ecosystem so i think they're on the right path i love slack i think it's a buy animal look forward to seeing what happens when it comes out danielle sched director of options at simpler trading thank you so much. thank you. that's it by this time you can catch a boom bust on direct t.v. channel three twenty one dish network out to eighty or streaming twenty four seven on put a t.v. the free t.v. at one thirty two are as always had i thought that you to dot com five boom bust r t c n x time. facebook and google started with a great idea and great ideals unfortunately it was also a very dark so. they are constructing a profile of you and that profile is real it's detailed and it never goes away
turns out that google is manipulating your opinions from the very first character that you type into the search bar it will always favor one dog food over another one comparative shopping service over another and one candidate over another they can suppress certain types of results deiced on what they think you should be see if they have this kind of power then democracy is an illusion the free and fair election doesn't exist the more growth we give them the sooner we are all paying. for. the american politics it's. going to tent city and the notion that somebody's playing games that the margins of the election dictate believe it or influence the outcome is frankly
this frankly absurd new food to compare russia with the states the united states has been involved war. in influencing the domestic politics of other countries in the then russia. we could only be dealt with the rule book. for the fall to do soon. sobers you do well sounds simple but just to me real particular. measure your purpose in life at play if they don't. know you among the group was a smile. to be on the move a movie before you know it except your then he says who calls with folks like me the bill for the security just hold it where you will pick up.
. the father of a russian a woman jailed for failing to register as a foreign agent says she is a pawn in russia hysteria. she was sentenced to simply being russian. none of. his activities in the us were illegal. in and of themselves but she got caught up in this and she rushes to start. signing up for the twenty first century silk road and china's belts and road form comes to a close in beijing with sixty four billion dollars worth of investment going. and french news outlets joined forces to condemn the country's intelligence service for summoning journalists a document.